This Warren Buffett Top 10 Stock Is Falling After Q4 Earnings Report - Here's Why
Portfolio Pulse from Vandana Singh
Kraft Heinz Company (NASDAQ:KHC) reported Q4 2023 sales of $6.86 billion, a 7.1% decrease Y/Y, missing consensus estimates. Organic Net Sales decreased by 0.7%. The company faced challenges from higher input costs, leading to price increases and a decline in volume/mix. Adjusted EPS was $0.78, down 8.2% Y/Y but above consensus. For 2024, Kraft Heinz expects adjusted earnings of $3.01 to $3.07 per share and anticipates organic sales growth between flat to 2%. Shares fell 6.17% to $33.90. Berkshire Hathaway (NYSE:BRK), with Kraft Heinz as its 7th top holding, may also be impacted.
February 14, 2024 | 7:51 pm
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NEGATIVE IMPACT
Berkshire Hathaway, with Kraft Heinz as its 7th top holding, may see indirect impact from KHC's Q4 earnings miss and share price decline.
As a major holder of KHC, Berkshire Hathaway's portfolio value is affected by KHC's performance. The Q4 earnings miss and subsequent share price decline of KHC could have a negative, albeit indirect, impact on BRK's valuation in the short term.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Kraft Heinz reported a decrease in Q4 sales and a drop in adjusted EPS, but provided a positive outlook for 2024 with expected organic sales growth and adjusted earnings. Shares fell 6.17%.
The reported decrease in sales and earnings, despite beating EPS estimates, led to a negative market reaction, reflected in the 6.17% drop in share price. The positive outlook for 2024 may mitigate long-term impacts but short-term sentiment is negative.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100